By Nathan Yau  /  Posted to Data Underload  /  ,

When the Cost of a Mortgage is a Multiple of the Original Loan

In early 2021, the average rate for a 30-year fixed rate mortgage was under three percent. According to Freddie Mac, the average rate this past week was 7.23%. That’s a big enough increase to feel the difference in your monthly payment, but it stings even more when you compound the cost over the length of the mortgage.

Use the chart below to see how many times over you’ll pay the original loan amount, given the annual rate and the number of years of paying.

Overall Cost of Fixed Rate Mortgage Payments


A 7% fixed rate mortgage over thirty years ends up costing 2.4 times the original loan. This does not include insurance, homeowners association fees, and initial mortgage fees. Fun.

On the upside, at least rates are not in the high teens like when my parents bought a house in the 1980s. There are also adjustable rate mortgages and refinancing options when rates (hopefully) go down.

For now, it seems like a good time to wait things out if you can.